System and method for buy-side order matching

ABSTRACT

Techniques for buy-side order matching in the trading of financial instruments using a centralized matching engine having one or more storage devices including rules and order parameters for a plurality of buy-side parties. The centralized matching engine includes one or more transmitters and receivers communicatively coupled to a network and one or more processors operatively coupled to the one or more storage devices and the one or more transmitters and receivers. At least one message sent over the network by a plurality of buy-side parties and is received by the central matching engine to set the rules or order parameters. At least one order of at least two of the plurality of buy-side parties is matched based on the rules and the order parameters. A message is transmitted over the network to a sell-side party indicating that trade negotiation can commence.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application is a continuation of U.S. patent application Ser. No.14/284,169 filed May 21, 2014 and entitled “SYSTEM AND METHOD FORBUY-SIDE ORDER MATCHING,” which is related to U.S. ProvisionalApplication Ser. No. 61/825,754, filed May 21, 2013, each of which isincorporated herein by reference in their entirety and from whichpriority is claimed.

BACKGROUND

The disclosed subject matter relates to techniques for the matching oforders in connection with the trading of financial instruments.

In the trading of financial instruments, including, e.g., equities,bonds, options, futures, derivatives, or the like, parties may desire totrade large blocks of an instrument. Conventional market structures canmake it difficult for a buy-side party (e.g., an investment manager) totrade a relatively large block of an instrument without providingdetails, such as the available size or price of an instrument, to otherfirms. For example, if a buy-side party wishes to execute a trade of arelatively large block of an instrument, the buy-side party couldcommunicate its trading intention, e.g., with an indication of interest(“IOI”) messaging system, to a sell-side party without a guarantee thata trade would actually be executed. This provision of details to otherfirms, e.g., sell-side parties, can lead to information leakage, whichcan have market impact that may have a detrimental effect on the tradingprice of the financial instrument.

Conventionally, a sell-side party acts as an intermediary between twopotential buy-side counterparties and facilitates the determination ofan appropriate size (i.e., the number of shares) and price of a tradebetween the counterparties. The sell-side party can receive IOI messagesfrom potential buy-side parties, and can balance potential buy-sideparties' trade interests. When two parties have trade interests thatgenerally align (i.e., one party wishes to sell a financial instrumentand another party wishes to buy that financial instrument), thesell-side party can facilitate the discovery of appropriate trade sizeand price. This conventional process, however, requires that buy-sideparties disclose information about their trading intentions, demand,price limits, block size, and the like. This information can impact themarket for a financial instrument. For example, a buy-side party'sintention to buy a large block of a financial instrument may signal anincreased demand for that instrument, which may increase the price atwhich others are willing to sell the financial instrument. Similarly,leakage of information about a seller's intent to sell a large block ofa given instrument could decrease the price that others would be willingto pay, thereby driving down the price before the full block has traded.

Accordingly, it is desirable to provide a method and system for matchingorders with reduced opportunity for the dissemination of related tobuy-side parties' trade intentions.

SUMMARY

The presently disclosed subject matter provides techniques for buy-sideorder matching, and more particularly to techniques for buy-side ordermatching without sell-side involvement in discovering a counterparty foran order.

In one aspect of the disclosed subject matter, a system for buy-sideorder matching in the trading of financial instruments using acentralized matching engine includes one or more storage devices havingstored therein one or more rules and one or more order parameters for aplurality of buy-side parties, one or more transmitters and receiverscommunicatively coupled to a network, and one or more processorsoperatively coupled to the one or more storage devices and the one ormore transmitters and receivers. The one or more processors areconfigured to receive at least one message sent over the network by aplurality of buy-side parties to set the one or more rules or the one ormore order parameters. The one or more processors are configured tomatch at least one order of at least two of the plurality of buy-sideparties based on the rules and the one or more order parameters. The oneor more processors are configured to transmit a message over the networkto a sell-side party indicating that trade negotiation can commence.

In certain embodiments, the order parameters can include one or more ofan instrument symbol, an order size, and an order direction for eachtrade interest placed by the plurality of buy-side parties. The one ormore rules can include, for the plurality of buy-side parties, anindication of which other buy-side parties, if any, to avoid matchingwith. Additionally or alternatively, the one or more rules can include,for the plurality of buy-side parties, an indication of sell-sideparties that each buy-side party is willing to engage with forsubsequent trade negotiation.

In certain embodiments, the one or more processors can be configured tomatch the orders of at least two of the plurality of buy-side partieswhen the order parameters for a first party and the order parameters fora second party include the same instrument symbol and the opposite orderdirection, when the one or more rules for the first party does notinclude an indication to avoid matching with the second party, when theone or more rules for the second party does not include an indication toavoid matching with the first party, and when the one or more rules forthe first and second party include a mutual sell-side party. After thematching of orders from the at least two buy-side parties, the centralmatching engine can communicate via the network with each of the atleast two buy-side parties to confirm interest. The message to thesell-side party can include instrument details and names of the at leasttwo buy-side parties.

In another aspect of the disclosed subject matter, a method for buy-sideorder matching in the trading of financial instruments including using acentralized matching engine including one or more storage devices havingstored therein one or more rules and one or more order parameters for aplurality of buy-side parties, one or more transmitters and receiverscommunicatively coupled to a network, and one or more processorsoperatively coupled to the one or more storage devices and the one ormore transmitters and receivers. The method includes receiving at leastone message sent over the network by a plurality of buy-side parties toset the one or more rules and the one or more order parameters. Themethod includes matching at least one order of at least two of theplurality of buy-side parties based on the one or more rules or the oneor more order parameters. The method includes transmitting a messageover the network to a sell-side party indicating that trade negotiationcan commence.

In certain embodiments, the one or more order parameters can include oneor more of an instrument symbol, an order size, and an order directionfor each trade interest placed by the plurality of buy-side parties. Theone or more rules can include, for the plurality of buy-side parties, anindication of which other buy-side parties, if any, to avoid matchingwith. Additionally or alternatively, the one or more rules can include,for the plurality of buy-side parties, an indication of sell-sideparties that each buy-side party is willing to engage with forsubsequent trade negotiation.

In certain embodiment, matching the orders of at least two of theplurality of buy-side parties can include identifying a match when theone or more order parameters for a first party and the one or more orderparameters for a second party include the same instrument symbol and theopposite order direction, when the one or more rules for the first partydoes not include an indication to avoid matching with the second party,when the one or more rules for the second party does not include anindication to avoid matching with the first party, and when the one ormore rules for the first and second party include a mutual sell-sideparty. The method can further include, after the matching of orders fromthe at least two buy-side parties, communicating via the network witheach of the at least two buy-side parties to confirm interest.Transmitting the message to the sell-side party can include transmittinga message including instrument details and names of the at least twobuy-side parties.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 illustrates a workflow diagram in accordance with an exemplaryembodiment of the disclosed subject matter.

FIG. 2 illustrates the discovery phase of buy-side order matching inaccordance with an exemplary embodiment of the disclosed subject matter.

FIG. 3 illustrates the discovery phase of buy-side order matching wheretwo buy-side parties have an aligned trade interest.

FIG. 4 illustrates the negotiation phase of the two buy-side parties ofFIG. 3.

FIG. 5a is a screen shot of an exemplary user interface for a buy-sideparty to communicate with a central matching engine in accordance withthe disclosed subject matter.

FIG. 5b is a screen shot an exemplary user interface for confirmation bya buy-side party of a trade interest in accordance with the disclosedsubject matter.

FIG. 5c is another screen shot of the exemplary user interface of FIG.5a illustrating confirmation by the user of one of the trade interests.

FIG. 5d is another screen shot of the exemplary user interface of FIG.5a illustrating confirmation by both buy-side parties of one of thetrade interests.

FIG. 5e is a screen shot of an exemplary user interface for a buy-sideparty after one of the trade interests has been submitted fornegotiation.

Throughout the drawings, the same reference numerals and characters,unless otherwise stated, are used to denote like features, elements,components or portions of the illustrated embodiments. Moreover, whilethe disclosed subject matter will now be described in detail withreference to the figures, it is done so in connection with theillustrative embodiments.

DETAILED DESCRIPTION

Exemplary embodiments of the disclosed subject matter are describedbelow, with reference to the figures, for purposes of illustration, andnot limitation.

The disclosed subject matter provides techniques for buy-side ordermatching without sell-side involvement in discovering a counterparty foran order. Generally, for purpose of illustration and as disclosed inmore detail below, buy-side parties can indicate, to a centralizedmatching engine, intent in trading a financial instrument. Thecentralized matching engine can identify a match between two buy-sideparties if certain criteria are met. If both counterparties approve thematch, a sell-side party can be notified that a trade negotiation cancommence, and is notified with the instrument detail and the names ofthe buy-side parties that have matched. In accordance with the disclosedsubject matter, the sell-side party need not be involved in the processof discovering a counterparty for an order, thus reducing leakage ofinformation regarding buy-side parties' trading intentions. That is, thebuy-side parties' trading intentions are not disclosed to the sell-sideparty until a match has been found.

In one aspect of the disclosed subject matter, techniques for buy-sideorder matching include a centralized matching engine associated with oneor more storage devices having stored therein a series of standard rulesand order parameters. The centralized matching engine is configured tocommunicate with a plurality of buy-side parties to set the series ofstandard rules and order parameters. The centralized matching engine isfurther configured to match orders from at least two of the plurality ofbuy-side parties based on the series of standard rules and orderparameters, and communicate with a sell-side party to notify thesell-side party that trade negotiation can commence. For purpose ofclarity, and not limitation, exemplary embodiments of the systems andmethods of this aspect of the disclosed subject matter will be describedconcurrently with reference to FIGS. 1-4.

In one exemplary and non-limiting embodiment, with reference to FIG. 1,techniques for buy-side order matching can include a centralizedmatching engine 100 associated with one or more storage devices (e.g.,including databases 110 and 120) having stored therein information,including, for example, a series of standard rules and order parameters.The centralized matching engine 100 can include, for example, one ormore servers connected to a network, such as the Internet or anintranet, and which can include one or more computer processors andmemories. Alternatively, the centralized matching engine 100 can includea standalone computer, a server cluster, a distributed computing system,a cloud-based computing system, a mobile computing system, or the like.The memories associated with the centralized matching engine 100 canstore executable instructions which, when executed by a processor, canimplement the techniques disclosed herein. As embodied herein, thememories can include non-transitory computer readable storage media,including, without limitation, random access memory (RAM) such asdynamic RAM (DRAM) or static RAM (SRAM), read-only memory (ROM),erasable programmable read-only memory (EPROM), electrically erasableprogrammable read-only memory (EEPROM), non-volatile RAM (NVRAM), aCD-ROM, DVD, Magnetic disk, or the like, as local storage, networkedstorage, cloud-based storage, or otherwise configured storage. Moreover,as used herein, the term “memory” or “memories” can also include one ormore databases.

The one or more storage devices associated with the centralized matchingengine 100 can include, for example, one or more databases (e.g.,databases 110 and 120). The database can be stored, for example, in theone or more memories of the centralized matching engine 100 or in one ormore other computer readable media storage devices, such as magnetic oroptical disks. In an exemplary embodiment, for purpose of illustrationand not limitation, a database 110 can store a set of standard rules forthe buy-side parties. For example, database 110 can store, for abuy-side party 101 a a list of blocked counterparties 111 a (i.e., alist of other buy-side parties with which buy-side party 101 a does notwish to trade with). Database 110 can also store, for buy-side party 101a, a list of sell-side parties 112 a with which the buy-side party 101 aapproves for negotiation of a matched order. The database 110 canlikewise store a list of blocked counterparties 110 b and list ofsell-side parties 112 b for buy-side party 101 b.

The databases can also store order parameters for the buy-side parties.For example, and not limitation, database 120 can store order parametersincluding information about buy-side party 101 a's declared tradeinterests 121 a as well as buy-side party 101 b's declared tradeinterests 121 b. Although FIG. 1 depicts database 110 and 120 asseparate entities, it will be appreciated that the buy-side parties'rules and order parameters can be stored in a single database, multipledatabases, federated databases, or other suitable arrangements.

The centralized matching engine 100 can be configured to communicatewith a plurality of buy-side parties (e.g., 101 a and 101 b) to set thestandard rules (e.g., 111 a, 112 a, 111 b, 112 b) and order parameters(e.g., 121 a, 121 b) stored in the one or more storage devices. Forexample, in an exemplary embodiment, the centralized matching engine 100can further include one or more modems, routers, access points,switches, other wireless or wired network connections, or the like. Inan exemplary embodiment, the centralized matching engine 100 can includea dedicated high speed connection, such as a T1 or T3 line, or someother type of fiber-optic connection, through a service provider. Thecentralized matching engine 100 can communicate with the plurality ofbuy-side parties in accordance with a known protocol, such as FinancialInformation eXchange (“FIX”), the ISO 15000 series of specifications,Swift, or any other suitable message format.

The series of order parameters (121 a, 121 b) can include, for example,a trade interest placed by one or more of the buy side parties. As usedherein the term “trade interest” refers to an expression showing acondition, non-binding interest in buying or selling a financialinstrument. For example, a first buy-side party 101 a (the “buyingcounterparty”) can communicate with the centralized matching engine 100to select an instrument symbol corresponding to a financial instrumentthe buying counterparty wishes to buy. Alternatively, the buyingcounterparty 101 a can set instrument characteristics indicative of thefinancial instrument the buying counterparty wishes to buy. The buy-sidecounterparty 101 a can also set the size (e.g., number of shares) of theinstrument desired and an indication that the direction of the trade is“buy.” At least a second buy-side party 101 b (the “sellingcounterparty”) can communicate with the centralized matching engine 100to likewise select an instrument symbol, instrument characteristics,size, and direction of the trade the selling counterparty wishes tosell.

In an exemplary and non-limiting embodiment, with reference to FIG. 2,the central matching engine 100 can communicate with a plurality ofbuy-side parties (201 a, 201 b, 201 c, 201 d, 201 e, 201 f[collectively, 201]). Each buy-side party in communication with thecentral matching 100 engine can independently transmit messages to thecentral matching engine 100 indicating that party's trade interests. Forexample, employees of the buy side parties 201 may enter the details ofone or more orders they wish to submit into an order management system.The order management system can be configured to generate messagesincluding the details of the orders and route the messages to thecentral matching engine 100. Additionally and/or alternatively, thedetails of orders may be generated by computer software instead ofentered by an employee. The transmitted order details can then be storedin the central matching engine 100 (e.g., in database 120).

As embodied herein, the buy-side parties 201 may each transmit aplurality of trade interests, and the central matching engine 100 canstore a plurality of trade interests for each party. In certainembodiments, the buy-side parties 201 can communicate with the centralmatching engine 100 to requests, modify, or cancel pending tradeinterests. For example, the central matching engine 100 can beconfigured to query the one or more storage devices for stored orderparameters for a particular buy-side party upon request. Similarly, thecentral matching engine 100 can be configured to remove or alter one ormore order parameters for a buy-side party upon request. In an exemplaryembodiment, communication between the buy-side parties 201 and centralmatching engine 100 for the purpose of requesting, modifying, orcanceling pending trade interests can include the transmission ofmessages between the parties 201 and central matching engine 100 inaccordance with the FIX protocol. One of skill in the art willappreciate, however, that messages can be transmitted in accordance witha variety of other suitable protocols.

The buy-side parties can likewise communicate with the central matchingengine 101 to set the standard rules (e.g., 111 a, 112 a, 111 b, 112 b).The series of standard rules can include, for example, an indication foreach buy-side party of which other buy-side parties, if any, eachbuy-side party does not want to be matched against for any tradeinterests. Additionally, the series of standard rules can include anindication of a list of sell-side parties that each buy-side party iswilling to use for subsequent negotiation. In accordance with anexemplary embodiment, for purpose of illustration, the available rulesfor each buy-side party can include.

The centralized matching engine 100 is configured to match orders fromat least two of a plurality of buy-side parties based on the series ofstandard rules and order parameters stored in the database (e.g.,database 110 and/or 120), and communicate with a sell-side party 130 tonotify the sell-side party that trade negotiation can commence. Forexample, in accordance with an exemplary embodiment, the centralizedmatching engine 100 can be configured to match the buying counterpartywith the selling counterparty if (1) one or more appropriate instrumentscan be traded, (2) the trade direction is opposite, (3) eachcounterparty has not indicated that they do not wish to trade with theother, (4) there is a mutual sell-side party shared by bothcounterparties that will take on the trade negotiation once the matchingengine has found a match. In accordance with an exemplary embodiment,the matching process can be performed by the central matching engine 100in real-time, continuously, throughout the trading day. In thisembodiment, matches can be identified on a time-priority basis, suchthat the highest priority match will be processed at any point in time.

The process of entry of order parameters and standard rules and theidentification of matching orders, as described herein, can be referredto as the “discovery phase.” FIG. 2 illustrates the operation of thecentral matching engine 100 during the discovery phase, and inparticular FIG. 2 illustrates the entry of order parameters frombuy-side parties 201. FIG. 3 depicts the operation of the centralmatching engine 100 discovery phase after a match has been found betweenbuy-side party 301 a and buy-side party 301 b. When the central matchingengine 100 identifies a match (i.e., when the central matching engine100 determines that two buy-side parties trade interests are alignedbased on the matching rules described herein), the central matchingengine 100 can check its storage devices (e.g., database 110 and/or 120)for a list of the preferred brokers corresponding to each party tochoose an appropriate broker for negotiation. For example, withreference to FIG. 3, buy-side party 301 a has submitted a set of rulesincluding negotiating sell-side list 312 a that indicates a preferencefor negotiation with Broker A, Broker B (313) and Broker C,respectively. Buy-side party 301 b has submitted a set of rulesincluding negotiating sell-side list 312 b indicating a preference fornegotiating with Broker B (313), Broker D, and Broker F, respectively.The central matching engine 100 can select a sell-side party fornegotiation between buy-side party 301 a and 301 b by identifying asell-side party common to both lists (e.g., Broker B, 313).Additionally, in certain embodiments, if the buy-side parties' sell-sidelists include multiple common sell-side parties, the central matchingengine 100 can choose a sell-side party based on the parties'preferences. Additionally and/or alternatively, in certain embodiments,the central matching engine 100 can communicate with each buy-side partyto determine the parties respective sell-side preferences. For example,the central matching engine 100 can transmit a list of mutual sell-sideparties to each buy-side counterparty, and each buy-side counterpartycan rank the mutual sell-side parties based on preference, for exampleusing a user interface such as that illustrated in FIG. 5 b.

After a match has been found and an appropriate sell-side party has beenidentified, the centralized matching engine 100 can communicate witheach counterparty (101 a, 101 b) to confirm each parties' interest. Forexample, with reference to FIG. 1 and without limitation, thecentralized matching engine 100 can send a message to a buyingcounterparty 101 a with an indication that a match has been found. Incertain embodiments, this message can include details about the matchincluding the identity of the matched counterparty, the instrumentsymbol and/or characteristics, and the like. One of skill in the artwill appreciate, however, that the information provided to the buy-sideparties after a match has been found need not include such information.For example, it may be desirable to prevent the sending of thisinformation to buy-side counterparties to further reduce informationleakage. The buying counterparty 101 a can confirm its trade interest byresponding to the centralized matching engine 100 with anacknowledgement message.

The selling counterparty 101 b can likewise confirm its trade interestby responding with an acknowledgment message. FIG. 3 likewise depicts anexample of a confirmation process. That is, after the matching engine100 has identified a match (i.e., that buy-side parties 301 a and 301b's trade interests are aligned) and identified an appropriate sell-sideparty (e.g., Broker B 313), each buy-side party 301 a and 301 b canconfirm their trade interest. For example, buy-side party 301 a can senda confirmation message 322 a to the central matching engine 100 that itstrade interest is current. Likewise, buy-side party 301 b can send aconfirmation message 322 b to the central matching engine 100 that itstrade interest is still current. It will be appreciated that, in someinstances, a buy-side party's trade interest may no longer be current.Accordingly, in certain embodiments, the central matching engine 100 canawait confirmation that a matched trade interest is still current fromboth buy-side parties to a match before divulging any details about thebuy-side parties to their respective counterparties. In this manner,leakage of information about the buy-side parties' positions can bereduced.

In accordance with an exemplary embodiment of the disclosed subjectmatter, if a buy-side party's trade interest is no longer current, thebuy-side party can provide the central-matching engine 100 with a reasonfor withdrawal of a trade interest. For example, a buy-side party mayindicate that they have already executed the trade interest, that theyare no longer interest, or provide another reason for withdrawal usingan exemplary user interface such as that depicted in FIG. 5b . The usercan click the “Withdraw” button 557, which can transmit a message to thecentral matching engine 100 indicating that the trade interest in notconfirmed and provide a reason for withdrawal.

If both buy-side parties confirm their trade interest, a message can besent to a mutual sell-side party to notify the sell-side party that atrade negotiation can commence. For example, and with reference to FIG.1, a message can be sent to a mutual sell-side party 130 (i.e., asell-side party that appears in both buy-side parties' sell-side partylists 112 a, 112 b). The mutual sell-side party 130 can be selected inaccordance with the series of rules stored in database 110 correspondingto each counterparty as described herein. The message to the sell-sideparty 130 can further include the instrument detail, and the names ofthe buy-side parties that have been matched.

FIG. 4 illustrates the negotiation phase, in accordance with anexemplary and non-limiting embodiment, for matched trade interests ofbuy-side party 301 a and buy-side party 301 b as depicted in FIG. 3. Inthis example, Broker B 313 has been identified as an appropriatesell-side party, buy-side party 301 a has confirmed its trade interestvia message 322 a, and buy-side party 301 b has confirmed its tradeinterest via message 322 b. Upon receipt of both confirmation messages322 a and 322 b, the central matching engine 100 can notify Broker B 313of the match and provide Broker B 313 with instrument detail and thenames of the buy-side parties 301 a and 301 b. For example, centralmatching engine 100 can transmit a message 433 to Broker B 313indicating the negotiation process can commence. Broker B 313 can act asan intermediary, and can start negotiation 435 a with buy-side party 301a and can start negotiation 435 b with buy-side party 301 b. Thetechniques disclosed herein can thus allow buy-side firms to find acounterparty for a trade with another buy-side firm without having toreveal the size or price of the trade to a sell-side party or involve asell-side party in the initial process of discovery of a counterparty.

For purpose of illustration, and not limitation, a series of exemplaryscreen shots depicting the discovery and negotiation phase of buy-sideorder matching in accordance with the disclosed subject matter areprovided in FIGS. 5a -e. FIG. 5a depicts a screen shot of a userinterface for use by a buy-side party to interact with central matchingengine 100. The user interface of FIG. 5a can be adapted display aplurality of trade interests corresponding to the buy-side party invarious stages of matching. For example, the user interface may includea section for the display matched interests 510 (i.e., trade interestsfor which the central matching engine has identified a match that hasnot yet been confirmed by the user), a section for the display ofconfirmed trade interests 520 (i.e., trade interests that have beenconfirmed by the user but not the counterparty), a section for thedisplay of trade interests in negotiation 530, and a section for thedisplay of negotiated and executed trades 540.

The screenshot of FIG. 5a depicts a matched trade interest 501 for theorder of a financial instrument with the symbol FDSA and an orderdirection of “buy.” In this screen shot, for purpose of illustration,trade interest 501 appears in the “Matched Interests” section 510because it has not yet been confirmed. The user interface can be adaptedto display additional details of the trade interest, for example thename of the financial instrument, the exchange on which it is traded, orthe like. The screen shot of FIG. 5a also displays an indication thatthe user must confirm the trade interest before proceeding. The userinterface may be adapted to receive input from the user, such as in theform of a mouse click, to display another user interface for orderconfirmation.

FIG. 5b depicts a screen shot of an exemplary user interface forconfirmation of trade interest of 501 for the purchase of FDSA. Asdescribed previously herein, the confirmation interface may include aninterface element 555 for sell-side party ranking The user may confirmthe trade interest by clicking the “Go Ahead” button 556. Alternatively,the user may withdraw the trade interest by clicking the “Withdraw”button 557, and may provide a reason for withdrawal as describedpreviously herein.

If the user confirms the trade interest by clicking the “Go Ahead”button 556, the user interface of FIG. 5a can be updated to displaytrade interest 501 under the “Awaiting Contra Confirmation” section 520as illustrated by the exemplary screen shot of FIG. 5c . After thebuy-side counterparty confirms their trade interest, the trade interestcan be submitted to an appropriate sell-side party for negotiation asdescribed herein. At this point, trade interest 501 can be displayedunder the “Negotiating” section 530 as illustrated in FIG. 5 d.

After negotiation has terminated, either successfully or unsuccessfully,the user can enter details about the negotiation using an interface suchas depicted in FIG. 5e . The interface of FIG. 5e allows the user toindicate whether the negotiation was successful (i.e., that thefinancial instrument was traded) or unsuccessful using interface element565. If negotiation was unsuccessful, the user may instruct the centralmatching engine 101 to continue to search for further matches usinginterface element 566. Additionally, the user can set or modify thestandard rules by which the central matching engine will use forsubsequent matches. For example, the user may alter their counterpartyand sell-side lists using the interface of FIG. 5e . The user mayadditionally rate the broker and counterparty used for negotiation oftrade interest 501 using interface element 567. If the user indicatesthat negotiation was successful, the user interface of FIG. 5a may beadapted to display trade interest 501 under the “Traded” 540 section.

As described above in connection with certain embodiments, certaincomponents, e.g., the centralized matching engine 100, can include acomputer or computers, processor, network, mobile device, cluster, orother hardware to perform various functions. Moreover, certain elementsof the disclosed subject matter can be embodied in computer readablecode which can be stored on computer readable media and which whenexecuted can cause a processor to perform certain functions describedherein. In these embodiments, the computer and/or other hardware play asignificant role in permitting the system and method for buy-side ordermatching. For example, the presence of the computers, processors,memory, storage, and networking hardware provides the ability to matchbuy-side orders in a more efficient manner. Moreover, the matching ofelectronic buy-side orders cannot be accomplished with pen or paper, assuch information is received over a network in electronic form.

Additionally, as described above in connection with certain embodiments,certain components can communicate with certain other components, forexample via a network, e.g., the Internet. To the extent not expresslystated above, the disclosed subject matter is intended to encompass bothsides of each transaction, including transmitting and receiving. One ofordinary skill in the art will readily understand that with regard tothe features described above, if one component transmits, sends, orotherwise makes available to another component, the other component willreceive or acquire, whether expressly stated or not.

The presently disclosed subject matter is not to be limited in scope bythe specific embodiments herein. Indeed, various modifications of thedisclosed subject matter in addition to those described herein willbecome apparent to those skilled in the art from the foregoingdescription and the accompanying figures. Such modifications areintended to fall within the scope of the appended claims.

1. A system for order matching in the trading of financial instruments,comprising: a centralized matching engine having one or moretransmitters and receivers, wherein the centralized matching engine iscommunicatively coupled to a network, the network including one or morefirst computer systems and at least one second computer system, whereinthe one or more first computer systems are configured to communicatebetween one or more first parties and the centralized matching engine,and wherein the at least one second computer system is configured tocommunicate between a second party and the centralized matching engine;the centralized matching engine further having one or more processorsoperatively coupled to one or more storage devices and the one or moretransmitters and receivers, the one or more processors configured to:receive at least one message sent over the network from any of the oneor more first party computer systems, wherein the at least one messageis stored in one or more of the storage devices and sets one or morerules and one or more order parameters; analyze the one or more rulesand the one or more order parameters to determine eligibility for atleast one of the one or more first parties; determine a first subset ofthe one or more first parties based on the one or more rules and the oneor more order parameters, wherein the first sub-set of the one or morefirst parties each conform to at least one of the one or more rules orthe one or more order parameters; match at least one trade interest of afirst first party with at least one trade interest of a second firstparty based on the identification of the first subset of the one or morefirst parties and the one or more rules or the one or more orderparameters; generate and transmit a match message to each first partycomputer system, the match message indicating that a match has beenfound; display information based on the match message on at least onefirst display, wherein the at least one first display is operativelyconnected to the one or more first computer systems, and wherein theinformation displayed on the one or more first display comprises a firstwindow approximately adjacent a second window; receive a reply messageinput from the one or more first computer systems, wherein the replymessage input indicates whether at least one first party confirms thetrade interest or whether at least one first party withdraws the tradeinterest; and transmit a negotiation message to the second partycomputer system upon receiving at least two reply message inputs from atleast two first parties confirming the respective trade interests,wherein the transmission of the negotiation message to the second partycomputer system indicates that trade negotiation can commence.
 2. Thesystem of claim 1, wherein the first window includes the trade interestand a first button.
 3. The system of claim 1, wherein the second windowincludes a second button.
 4. The system of claim 1, wherein the firstcomputer system is a buy-side computer system and the second computersystem is a sell-side computer system.
 5. The system of claim 1, whereinthe one or more rules and the one or more order parameters include atrade interest, wherein the one or more order parameters include one ormore of an instrument symbol, an order size, and an order direction foreach trade interest placed by the one or more first parties, and whereinthe one or more rules includes, for the one or more first parties, anindication of which other first parties, if any, to avoid matching with,and an indication of at least one second party that each first party iswilling to engage with for subsequent trade negotiation.
 6. The systemof claim 1, wherein the one or more processors are configured to matchthe orders of at least two of the one or more first parties when the oneor more order parameters for a first party and the one or more orderparameters for a second party include the same instrument symbol and theopposite order direction, when the one or more rules for the first partydoes not include an indication to avoid matching with the second party,when the one or more rules for the second party does not include anindication to avoid matching with the first party, and when the one ormore rules for the first and second party include a mutual second party.7. The system of claim 1, wherein the one or more processors are furtherconfigured to communicate via the network with each first party towithdraw, modify, or cancel pending trade interests.
 8. The system ofclaim 1, wherein the message to the second party includes instrumentdetails and names or identities of the at least two first parties.
 9. Amethod for order matching in the trading of financial instruments usinga centralized matching engine having one or more transmitters andreceivers, wherein the centralized matching engine is communicativelycoupled to a network, the network including one or more first computersystems and at least one second computer system, wherein the one or morefirst computer systems are configured to communicate between a one ormore first parties and the centralized matching engine, wherein the atleast one second computer system is configured to communicate between asecond party and the centralized matching engine, wherein thecentralized matching engine further includes one or more processorsoperatively coupled to one or more storage devices and the one or moretransmitters and receivers, the method comprising: receiving at leastone message sent over the network from any of the one or more firstparty computer systems, wherein the at least one message is stored inone or more of the storage devices and sets one or more rules and theone or more order parameters; analyzing the one or more rules and theone or more order parameters to determine eligibility for at least oneof the one or more first parties; determining a first subset of the oneor more first parties based on the one or more rules and the one or moreorder parameters, wherein the first sub-set of the one or more firstparties each conform to at least one of the one or more rules or the oneor more order parameters; matching at least one trade interest of afirst first party with at least one trade interest of a second firstparty based on the identification of the first subset of the one or morefirst parties and the one or more rules or the one or more orderparameters; generating and transmitting a match message to each firstparty computer system, the match message indicating that a match hasbeen found; displaying information based on the match message on atleast one first display, wherein the at least one first display isoperatively connected to the one or more first computer systems, andwherein the information displayed on the one or more first displaycomprises a first window approximately adjacent a second window;receiving a reply message input from the one or more first computersystems, wherein the reply message input indicates whether at least onefirst party confirms the trade interest or whether at least one firstparty withdraws the trade interest; transmitting a negotiation messageto the second party computer system upon receiving at least two replymessage inputs from at least two first parties confirming the respectivetrade interests, wherein the transmission of the negotiation message tothe second party computer system indicates that trade negotiation cancommence.
 10. The method of claim 9, wherein the first window includesthe trade interest and a first button.
 11. The method of claim 9,wherein the second window includes a second button.
 12. The method ofclaim 9, wherein the first computer system is a buy-side computer systemand the second computer system is a sell-side computer system.
 13. Themethod of claim 9, wherein the one or more rules and the one or moreorder parameters include a trade interest, wherein the one or more orderparameters include one or more of an instrument symbol, an order size,and an order direction for each trade interest placed by the one or morefirst parties, and wherein the one or more rules includes, for the oneor more first parties, an indication of which other first parties, ifany, to avoid matching with, and an indication of at least one secondparty that each first party is willing to engage with for subsequenttrade negotiation.
 14. The method of claim 9, further comprisingmatching the orders of at least two of the one or more first partieswhen the one or more order parameters for a first party and the one ormore order parameters for a second party include the same instrumentsymbol and the opposite order direction, when the one or more rules forthe first party does not include an indication to avoid matching withthe second party, when the one or more rules for the second party doesnot include an indication to avoid matching with the first party, andwhen the one or more rules for the first and second party include amutual second party.
 15. The method of claim 9, further comprisingcommunicating via the network with each first party to withdraw, modify,or cancel pending trade interests.
 16. The method of claim 9, whereinthe message to the second party includes instrument details and names oridentities of the at least two first parties.
 17. A non-transitorycomputer-readable medium storing instructions that, when executed by aprocessor, cause a computer system to match orders in the trading offinancial instruments, by performing the steps of: receiving at leastone message sent over a network from any of one or more first partycomputer systems, wherein the network includes the one or more firstcomputer systems and at least one second computer system, wherein theone or more first computer systems are configured to communicate betweenone or more first parties and a centralized computer matching engine,wherein the at least one second computer system is configured tocommunicate between a second party and the centralized computer matchingengine, and wherein the at least one message is stored in one or morestorage devices coupled to the centralized matching engine and sets oneor more rules and one or more order parameters; analyzing the one ormore rules and the one or more order parameters to determine eligibilityfor at least of the one or more first parties; determining a firstsubset of the one or more first parties based on the one or more rulesand the one or more order parameters, wherein the first sub-set of theone or more first parties each conform to at least one of the one ormore rules or the one or more order parameters; matching at least onetrade interest of a first first party with at least one trade interestof a second first party based on the identification of the first subsetof the one or more first parties and the one or more rules or the one ormore order parameters; generating and transmitting a match message toeach first party computer system, the match message indicating that amatch has been found; displaying information based on the match messageon at least one first display, wherein the at least one first display isoperatively connected to the one or more first computer systems, andwherein the information displayed on the one or more first displayscomprises a first window approximately adjacent a second window;receiving a reply message input from the one or more first computersystems, wherein the reply message input indicates whether at least onefirst party confirms the trade interest or whether at least one firstparty withdraws the trade interest; and transmitting a negotiationmessage to the second party computer system upon receiving at least tworeply message inputs from at least two first parties confirming therespective trade interests, wherein the transmission of the negotiationmessage to the second party computer system indicates that tradenegotiation can commence.
 18. The non-transitory computer readablemedium of claim 17, wherein the first window includes the trade interestand a first button, and wherein the second window includes a secondbutton.
 19. The non-transitory computer readable medium of claim 17,wherein the one or more rules and the one or more order parametersinclude a trade interest, wherein the one or more order parametersinclude one or more of an instrument symbol, an order size, and an orderdirection for each trade interest placed by the one or more firstparties, and wherein the one or more rules includes, for the one or morefirst parties, an indication of which other first parties, if any, toavoid matching with, and an indication of at least one second party thateach first party is willing to engage with for subsequent tradenegotiation, and wherein the message to the second party includesinstrument details and names or identities of the at least two firstparties.
 20. The non-transitory computer readable medium of claim 17,further comprising matching the orders of at least two of the one ormore first parties when the one or more order parameters for a firstparty and the one or more order parameters for a second party includethe same instrument symbol and the opposite order direction, when theone or more rules for the first party does not include an indication toavoid matching with the second party, when the one or more rules for thesecond party does not include an indication to avoid matching with thefirst party, and when the one or more rules for the first and secondparty include a mutual second party.